According to the G20 Financial Inclusion Action Plan (FIAP) by GPFI released on September 7, тАЬMSME finance, interpreted as improving MSMEsтАЩ access to finance in G20 and non-G20 countries, (is important) particularly in low-income and developing countries, through innovative methods (including digital infrastructures) for enhancing growth, resilience and exiting informality.тАЭ
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MSME access to finance: The Global Partnership for Financial Inclusion (GPFI), a platform for G20 and interested non-G20 countries to advance financial inclusion globally, has improving access to finance for MSMEs as one of the two priority areas for the next three years (2024-2026).
According to the G20 Financial Inclusion Action Plan (FIAP) by GPFI released on September 7, тАЬMSME finance, interpreted as improving MSMEsтАЩ access to finance in G20 and non-G20 countries, (is important) particularly in low-income and developing countries, through innovative methods (including digital infrastructures) for enhancing growth, resilience and exiting informality.тАЭ
Also read: G20 presidency: Taking financial inclusion to the next level
Credit access for MSMEs and digital financial inclusion in G20 and non-G20 countries to provide financially excluded and underserved populations with a range of formal financial services are the two existing prioritized topics for GPFI. The platform will continue to focus on the two areas тАЬwhich have been greatly significant in the efforts to advance financial inclusion globally,тАЭ the action plan document said.
According to the deliverables outlined for 2024, in order to enhance MSMEsтАЩ access to finance, the action plan noted that policy options will be identified for improving тАШlast mileтАЩ access and quality inclusion for individuals and MSMEs through digital infrastructure, including digital public infrastructure, consumer protection and other FIAP objectives.
Also, a new action plan for SME financing, which will be a multi-year project, will be developed to identify crucial action areas and concrete /actions for countries to fill the gaps in MSME financing and improve access. This will also focus on utilizing innovative digital infrastructures, including Digital Public Infrastructure (DPI), for removing various traditional barriers in order to enhance financial inclusion, the document said.
Meanwhile, a G20 Policy Recommendation paper by the World Bank on Thursday on advancing financial inclusion and productivity gains through digital public infrastructure (DPI) noted that DPIs can help address the challenge of access to credit faced by SMEs by providing latter with access to financial services and information through digital channels.
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